The U.S. Department of Justice can take over management of troubled Boardman mega-dairy Lost Valley Farm, a bankruptcy judge ruled last week.
According to a story in the Statesman-Journal, dairy owner Greg te Velde also will lose control of his two California dairies – GJ te Velde Dairy in Tipton and Pacific Rim Dairy in Corcoran.
“Te Velde is unwilling, or unable, to comply with his duties as a fiduciary,” Judge Fredrick Clement wrote in his decision.
In the article, the Statesman-Journal quoted the judge as saying the following:
“Since filing (bankruptcy), he has continued his long-standing habits of methamphetamine usage and gambling,” Clement wrote. “Drug usage has occurred once or twice per week, and he has gambled estate monies of $2,000-$7,000 monthly. Te Velde borrowed $205,000 without court authorization, and in a one-month period took personal draws of $28,000 more than authorized.”
The bankruptcy court now will appoint a trustee to manage te Velde’s three dairies.
Lost Valley Farm opened in April 2017 near Boardman to supply milk to the Tillamook County Creamery Association, which makes Tillamook Cheese at a nearby factory.
According to the Statesman-Journal, Te Velde is also facing criminal charges in California for felony meth possession and trying to bribe a police officer following an incident at a casino earlier this year. The case is scheduled for a pretrial conference hearing Sept. 18.
Go online to read the full story.